New Zealand Times. THURSDAY, JULY 23, 1874.

New Zealand Times, Volume XXIX, Issue 4162, 23 July 1874, Page 2

New Zealand Times. THURSDAY, JULY 23, 1874.

It is one thing to tell, in a general way, that a country is in a prosperous condition, and another of a totally distinct character to como forward and show what arc the springs of that prosperity, where they take, their rise, to what extent each one is operating, and what is the amount of success obtained. The one any person may do ; the other requires a commanding intelligence. There has recently been a general conviction springing up that New Zealand is in a flourishing condition ; but few persons could have expected that the Premier would be able to produce such a balance sheet as he did on Tuesday evening. This must, we should imagine, rather astonish the few croakers and marplots in our midst, who mutter, in obscure corners, to scanty audiences, their forebodings of evil. The facts and figures they have had presented to them are perfectly unassailable. From these there is but one inference to be drawn, and it is at total variance with the views of the Jeremiahs of our day. We can understand the different feeling that must have actuated Mr. Vogel whilst collating the various net results that he intended to bring before the notice of the House, and whilst contrasting these with those of former years. Then the condition of the Colony was a source of grave anxiety to those who had the conduct of its public affairs. A disastrous war was just over, and men were anxious lest the ground under their feet should prove to be hollow. Resources were crippled, and energies were dormant. Now, the ship of state is rapidly forging ahead, with a favorable breeze, in smooth waters. The ordinary revenue more than covers the expenditure, and the Premier has to ask the question propounded by Sir Stafford Northcote, “ What am I to do with all this money?” As he rightly said, there could be no question of halting in the onward course being pursued. His ambition was to see tho Colony the mistress of the Southern Ocean, inhabited by a great maritime, commercial, manufacturing, and producing nation. And such it will be, if but there be vouchsafed it a few more years of such prosperity as the past one has been. There will, however, still require a firm hand at the helm. There are amongst us those who, seeing what the policy of the introduction of both men and money has done for the country, think there can be no limit to this. Their cry is “ borrow more money, introduce more immigrants, and push on public works everywhere.” Tho Premier has no intention to be carried away by this cry. There are limits in the money market which a prudent financier is bound to take note of ; and to push public works on too rapidly involves an unwarrantable interference with the labor market.

Tho prime feature of the Budget was that it proposed not to aid the revenue out of the loan fund, but to diminish indebtedness out of ordinary resources. The public debt was being managed in a way more popular with public trustees, who, naturally enough; did not like to have to buy debentures at a premium which were liable to be drawn every day and paid off at par. The next point of interest was that which showed tho astounding increase that was taking place yearly in the land fund. Whilst alluding to the gratifying surplus that he had to announce, Mr. Vogel pointed out that there had been a decrease in but three trifling items ; but there., was the enormous excess of £211,000 in the Customs’ duties ; £9600 in the revenue from stamps, which had before been in an unsatisfactory condition ; £7BOO in the amount received from postal services ; and £6OOO from the telegraph offices. These two latter items, he thought, were signs of the times, and indicated progress. Then he gave a series of tables which showed that there was even greater prosperity than was directly apparent. All that tho Colony imported was not consumed ; and there was a portion not directly perishable that added to its capital and to its wealth-producing properties. This might be said of machinery and many other articles. In 1872, there were imported goods of this class to the value of £1,400,000. In 1873, the value road to £2,125,000. The public estate of the North Island will, in Mr. Vogel’s opinion, bo as of much value to it as that of tho Middle Island has been to it. This, of course, refers to a time when there shall be ready means of communication through it. In considering the cost of our railways and public works, some persons have been apt to forget this asset, which is in their favor. In tho first place the total amount of interest that will bo required to be annually paid on the cost of constructing them would very nearly be covered by the surplus of this year’s revenue. And they have mightily increased the value of land within a certain radius of them. We take it that the Premier was giving a word of advice to the authorities of Wellington when ho intimated that although he considered harbors to bo the property of the Colony, the Government would not object to local boards borrowing money, for their construction upon security of tho dues, such loans to be first sanctioned by the Governor in Council. The Premier was particularly interesting when he spoke in detail of the Provinces—Auckland, though heavily weighted, yet with a great future before it, and others which, though contributing largely to the general revenue, had a totally insufficient local one. In others it was vice versa. For the former it was and had been uphill work, and their condition was lamentable in the extreme. For Auckland, Westland, and Nelson, Mr. Vogel said ho had very great sympathy. One of the most interesting portions of the Treasurer’s Financial Speech was that in which he alluded to the disposition of the surplus. There would be persons, ho said, who would think that he might have applied it to the reduction of taxation. He did not think this a wise course. Tho taxation tho people have to pay they can very well bear. Besides, it docs not follow that the present prosperity will always abide with us, oven if Ministers were heaven-born. In other Colonies, calculations that have had every appearance of being accurate, have been rendered tho contrary by acts of Providence. Droughts have sot in, tho wheat crops have been spoiled by the rust, or other unavoidable calamities have occurred. Possibly Now Zealand is more exempt from such scourges than Australia, but hero there might bo unavoidable catastrophes. Tho Treasurer, therefore, intends to apply his surplus rather to a reduction of existing indebtedness, than to a diminution of taxation. In the wisdom of this course moat sensible people will heartily acquiesce. There are, as wo are aware, times when greater relief is afforded by taking off duties than by paying off debts. There has been a case in England to the point. Mr. Gladstone might, instead of reducing

the tea and sugar duties, have lessened the national debt by a few millions. But he argued, sagaciously enough, that the former course would give the greatest relief to the largest number of the population. Here Mr. Vogel could not admit that such would he the case. Moreover, the course he indicates is politic in another respect. This Budget speech of his will be read with interest, not only in tho Australian Colonies*, but in England. In the latter place it will have a tendency both to increase the credit of the Colony and enhance the value of its bonds. Financiers will point to tho fact that a Colony, which alone in those of Australasia has a public policy, has a surplus revenue—a lusus natures in Australia—which it will apply to the discharge of its obligations. When, under such circumstances, we enter tho market to again borrow, the fact will be sot down to our credit. And if the value of existing bonds bo increased, Now Zealand holders of the same can receive the benefit, if they think proper. If tho bonds were held largely enough here tho Colony might thus get ricl’of its indebtedness to a certain extent, and at tho same time make itself a present of a portion of the money by which it does so. Tho proposition is eminently statesmanlike.